TULSA, Okla., March 15, 2012 /PRNewswire/ -- Parnon Gathering, Inc. is pleased to announce that construction on the Great Salt Plains Pipeline commenced in early March and is scheduled for completion in July. The project includes laying approximately 115 miles of new 8 inch pipeline from Cherokee, Oklahoma to Cushing, Oklahoma and will be able to move 20,000 barrels per day of crude oil and, with a simple upgrade, have the ability to raise the rate to 35,000 barrels per day. It will transport crude oil production from central and western Oklahoma and southern Kansas and will deliver to Parnon's tanks located at Cushing.

"We've made significant progress in the last few months, with all of the steel pipe sections manufactured and delivered, rights of way secured and approvals received from the various Government agencies. With construction of the pipeline and our new terminal at Cherokee, Oklahoma now underway, we are looking ahead confidently to operate the facility this summer," said Paul Adams, CEO of Parnon.

A construction contract has been signed with Global Pipeline Construction, L.L.C., providing for the construction of the Great Salt Plains Pipeline. In addition, Parnon has signed an EPC contract with IPS Engineering to manage the project. "We are happy to have Global and IPS working with us on this project, we are certain they will implement all the highest standards in the execution of the pipeline and terminal construction," said Adams.

The IPS management team, which consists of experts in construction, engineering, health and safety, security, environmental and community affairs, will maintain oversight of the construction process with audits, inspections and quality control on a daily basis.

Parnon Gathering, Inc., headquartered in Tulsa, OK, is a crude oil logistics company operating both owned pipelines and trucks and providing transportation and marketing for North America's oil industry. Parnon Gathering looks to establish long–lasting relationships with producers and refiners and works to maintain and build upon these relationships by providing exceptional customer service.